Is storing decentralized debt possible?

[tmbp]

Specifically, is determining whether a transaction has been paid out by Dwolla/PayPal/Banks possible? Because if we found a way to convince these institutions and be able to determine the boolean value we could then build a decentralized chain of debt on top of that and have a semi-decentralized system that you could use to purchase BTC without exchanges.

[ChicagoBob]

There is a system available where you can purchase BTC without exchanges.  I am researching that myself for my own use because I have just a bit less confidence in Mt. Gox than I had last week.

http://bitcoin-otc.com

You are dealing with individuals and there is a lot to read before you start, not only about the mechanics but also how to check out the reputation of whoever that is Over The Counter that you would consider trading with.

But there's no exchange.  And I think that if one is careful it might be safer than dealing with someone in a parking lot with an Android wallet - at least there seems to be some history and validation online.

I haven't used it yet though, still evaluating the safety issues.

[gogxmagog]

as far as I understand, tmbp. what you ask for here is what ripple's IOU system is supposed to do. they aren't very good at the "for dummies" (no offense) explanation of this system, but you should check it out. If it gets wide adoption, I believe it can supply just what you are inquiring about. people confuse it for being merely a bitcoin competitor (note the extensive FUD regarding it in these forums), but it seems to aim for being more of a side-by-side technology to facilitate decentralized credit within the bitcoin network.

http://en.wikipedia.org/wiki/Ripple_%28monetary_system%29

I still don't wholly understand it, but that's never a good reason to knock it. as far as I can tell it may prove to be very valuable once bitcoin becomes ubiquitous. it is interesting to say the least.

[tmbp]

as far as I understand, tmbp. what you ask for here is what ripple's IOU system is supposed to do. they aren't very good at the "for dummies" (no offense) explanation of this system, but you should check it out. If it gets wide adoption, I believe it can supply just what you are inquiring about. people confuse it for being merely a bitcoin competitor (note the extensive FUD regarding it in these forums), but it seems to aim for being more of a side-by-side technology to facilitate decentralized credit within the bitcoin network.

http://en.wikipedia.org/wiki/Ripple_%28monetary_system%29

I still don't wholly understand it, but that's never a good reason to knock it. as far as I can tell it may prove to be very valuable once bitcoin becomes ubiquitous. it is interesting to say the least.

Ripple is the very definitions of a pyramid scheme, it's not open source, they blatantly lie about it on their page. I was thinking of something else at all..